Engineering-based cost segregation study
Businesses that own and develop property have long recognized the benefit of depreciation to decrease taxable income. The faster a building can be depreciated, the longer taxes can be deferred. And the higher the present value of those deferrals, the greater the potential savings.
You may be eligible if you have purchased or built a building worth $1 million or more or if you have completed more than $500,000 in property improvements in the past 10 years. Depending on the type and use of a building, the percentage that can be reclassified may be as high as 41%.
|Type or use of building
||Percentage typically classified as shorter-lived property
Other real estate investment opportunities that could benefit your business might include rehabilitation tax credits, low income housing tax credits, and development enterprise zone incentives and deductions.
Research and Development (R&D) Tax Credit
Research and experimentation can generate significant tax credits for businesses. In fact, according to a recent analysis, startups benefit on average $151,000 per claim. Our tax professionals can help you determine whether the R&D tax credit can apply to your situation. Our business advisors are experienced in performing IRS-compliant research and experimentation tax credit studies to help companies maximize their benefits.
- Preliminary assessment—Our business advisors begin by interviewing your management team to better understand your business and R&D strategy.
- Engagement—During this phase, our professionals conduct an extensive review of your development efforts, determine which activities qualify for the tax credit, and document these projects. After quantifying the qualified research expenditures, we calculate the tax credit.
- Future systems—To ensure that you maximize tax credits year after year, our business advisors help your management team set up and maintain systems that will qualify, document, and quantify future research and development activities.